Gate Research Institute: U.S., Japanese, Korean, and Hong Kong Stocks Have Different Return Drivers, Gate Stocks Connect Four Core Markets

Odaily Seoro Ilbo Report Gate Research Institute has released its latest Gate TradFi Global Markets Connectivity Research Report, pointing out that the four markets of the U.S., Japan, Korea, and Hong Kong have different sources of returns: U.S. stocks rely on corporate earnings and technology investment, Japanese stocks benefit from governance reform and improved capital efficiency, Korean stocks are mainly driven by the semiconductor cycle, and Hong Kong stocks depend on changes in Chinese corporate earnings, capital flows, and risk premiums.

Since 2016, the annualized returns of U.S. stocks and Korean stocks have been similar, but Korean stocks have shown significantly higher volatility and drawdowns; Japanese stocks have certain diversification value, while Hong Kong stocks have experienced a longer valuation recovery cycle. Backtesting shows that cross-market diversification can reduce dependence on a single market, and trend rotation can also help improve drawdowns, but it cannot eliminate systemic risk, and higher turnover may increase trading costs.

Gate TradFi incorporates U.S. stocks, Japanese stocks, Korean stocks, and Hong Kong stocks into a unified stock account, covering more than 10,000 U.S. stocks and ETFs, more than 1,500 Hong Kong stocks, more than 1,000 Korean stocks, and about 300 Japanese stocks, totaling coverage of more than 12,800 stock and ETF assets worldwide. The platform further connects market data such as indices, foreign exchange, and metals, supporting investors in conducting cross-regional market comparisons, target screening, and portfolio management within the same trading environment, expanding multi-asset observation and trading scenarios.